Acquiring Minds Podcast Summary

Episode Title: Overcoming a Career Rut by Buying a Business

Host: Will Smith
Guest: Bruce Van, Owner of Luxout Stage Curtains
Date: February 14, 2022

Overview

In this episode of Acquiring Minds, Will Smith interviews Bruce Van about his journey from experiencing repeated professional setbacks—including multiple job losses—to becoming the owner of Luxout Stage Curtains in Richmond, Virginia. The conversation covers Bruce's background, the emotional and tactical challenges of a career rut, the practicalities and mindset of searching for and acquiring a small business, the unique aspects of the stage curtain industry, and the personal significance of entrepreneurship as a Black business owner in the American South.

Key Discussion Points & Insights

1. Bruce’s Career Background and Professional Rut ([01:49]–[08:32])

• Educational Path:
  • BA in Economics; MBA from Darden, University of Virginia.
  • Professional stints at GEICO (product management—“wasn’t going to make much money there”), and an oil & gas company (CFO-type role; “the culture of the company didn’t really work for me”).
• Rough Career Patch:
  • Lost three jobs in four years, leading to a deep professional and emotional low.
  • “Especially as a black man in this country, you don’t want any strikes against you because you really basically have to be perfect in order to get anywhere close to what you’re warranted to get.” ([06:23])
  • Early entrepreneurial tendency (“sold candy and drinks in high school” [07:43]).

Quote:
“It was a bad fit for me, and I kept getting… these were the only jobs I could find. But… I was actually suicidal at one point… But fortunately, by the grace of God, I pulled through definitely with the support of my family.”
— Bruce Van ([06:23])

2. Discovering Acquisition Entrepreneurship ([08:32]–[10:59])

• Support Network:

  • Prompted by a “random” connection to explore the ‘search fund’ model.
  • Chose a self-funded search, using personal savings (through frugality at previous jobs) and an SBA loan—no outside capital raised.

• Search Parameters:

  • Industry, geography not important; focus on a business he could “scale and not mess up,” buy at “an acceptable multiple.”
  • Used Biz Buy Sell, brokers, persistent outreach.

Quote:
“I didn’t care about industry. Didn’t really care that much about where it was. I just cared that I could find something… that I knew I could scale and wrap my head around.”
— Bruce Van ([10:13])

3. Search Process & Deal Sourcing ([11:07]–[17:59])

• Tools & Process:
  • Tracked deals using basic Google Sheets (“because I was that cheap”), processing “hundreds at least per month, probably in the thousands” ([13:39]).
  • Persistence & boldness emphasized as keys for search success.
• On Biz Buy Sell vs. Proprietary:
  • Early attempts at proprietary search led to unreasonable seller expectations.
  • Brokers helped mediate valuations and bring realism.
• Missed Deals:
  • Lost a concrete business when broker ghosted/raised price ([15:58]).
  • Walked from a landscaping business over valuation and disrespect (“seller called me a nuisance”); ultimately, business was relisted at a much lower price.

Quote:
“If there’s one thing I absolutely believe in, it’s being persistent. And this role… is very… If you are a persistent person, doesn’t really matter how smart you are per se… you just have to be extremely persistent in executing and keeping your deal flow up.”
— Bruce Van ([12:01])

4. Emotional Toll of Searching & Navigating the Loneliness ([18:03]–[20:35])

• Mental State:
  • Compared searching to full-court basketball shots; rejection and loneliness common, but headspace improved after hitting career low point.
  • Dreamt of running a business in “the hood” and realized it upon acquiring Luxout in Richmond, which felt validating.
  • Search duration: 6 months to find Luxout, another 6–7 months to close ([20:41]).

5. The Business: Luxout Stage Curtains ([21:50]–[27:34])

• Company Overview:

  • In operation since the 1940s; makes and installs custom stage curtains—niche, regionally segmented business.
  • Key differentiators: custom quote tool, specialized sewing technique for pleats, focus on transparency and safety.
  • Revenues in “the seven figures,” purchase price “less than $2 million,” acquired at an “awesome” 2x EBITDA multiple.
  • Broker’s cash flow estimate was undervalued; Bruce’s due diligence revealed underpricing, leading to immediate equity gain.

• Growth:

  • Focus on aggressive organic growth via proactive sales.
  • Acknowledged replacement market opportunity (curtains last ~15 years).
  • Acquisition of competitors possible but primarily focused on dominating the mid-Atlantic.

Quote:
“The moment I purchased the company, my net worth went up substantially, which was great… because of my digging and my persistence, I was able to find, oh, this is like a great deal.”
— Bruce Van ([27:17])

6. Transitioning from Unemployment to Owner ([32:41]–[36:21])

• Expectations vs. Reality:
  • “Best of times and the worst of times simultaneously”—substantial first-year earnings, but disruptions (COVID, supply/demand swings).
  • Managed 25 employees; manufacturing is in-house (Richmond, plus staff in TX & NC).
  • Installation and labor challenges during pandemic required Bruce to “work in” the business early on.

7. Industry Dynamics & Resilience ([36:21]–[40:05])

• Why Not Outsourced to China?:
  • Custom, high-touch nature and tight timelines make outsourcing impractical: “If the workroom that made it were in China, that would be a nightmare scenario.”
  • Typical curtain jobs for schools:
    • Elementary: ~$4,000
    • Middle: ~$7,500–$8,000
    • High School: ~$10,000–$17,000
    • Large auditoriums: Significantly higher.

8. Working On vs. In the Business: Leadership Lessons ([40:23]–[47:02])

• Managerial Growth:
  • Advocates for “working on the business, not in the business”—but necessity required hands-on involvement during crises.
  • Emphasizes business continuity, documenting critical processes.
  • First experience managing a sizable, diverse team—“I wasn’t prepared for emotionally what that was going to be like… people blowing up at each other… no one-size-fits-all solution.”

9. Wealth, Ownership, and Personal Fulfillment ([47:12]–[49:57])

• Financial Leap:
  • Transition from unemployment to owner-operator with salary and substantial profits.
  • “It’s hella cool, man. I think I’m living a dream of previous seasons of my life.” ([47:53])
• Power of Acquisition:
  • Encourages others: “If you find something that’s relatively stable, just go for it. To me, I think it’s worth it to just go for it.”

10. Personal and Historical Significance ([49:57]–[52:51])

• Owning a Business as a Black Man in Richmond:
  • Deep, personal pride—business based in the “capital of the Confederacy”; family roots at Point Comfort, the first site of African captives’ arrival to the US.
  • Ownership as generational change: “Hopefully…when myself and my wife have children… they won’t have to go and beg somebody not to fire them three times when they know they’re qualified to do work.” ([50:20])

Quote:
“These people made an entire country to keep people like me from doing what I’m doing right now. And I just feel elated, elated… that I’m able to do that and realize the dream.”
— Bruce Van ([50:20])

• Racial Dynamics in Search:
  • Experiences occasional racism/disrespect (e.g., landscaping seller).
  • Encouragement to other minority or underrepresented searchers to persevere and seek support.

Notable Quotes & Memorable Moments

• On Resilience:
  “Hopefully it makes you better and not bitter when it’s all said and done.” — Bruce Van ([52:40])

• On Search Grit:
  “It’s just a numbers game. You put up as many shots as you can…and eventually something goes in if you do it the right way.” — Bruce Van ([19:53])

• On Immediate Net Worth Gain:
  “The moment I purchased the company my net worth went up substantially.” — Will Smith paraphrasing, Bruce Van confirming ([27:17])

Key Timestamps

| Segment | Timestamp | |-------------------------------------------------|-----------| | Bruce’s Pre-Acquisition Background | 01:49–08:32 | | Discovery of Acquisition Entrepreneurship | 08:32–10:59 | | Search Process & Deal Flow | 11:07–17:59 | | Emotional/Mental Toll of Search | 18:03–20:35 | | Finding & Closing on Luxout Stage Curtains | 20:41–21:50 | | Luxout Business Overview & Industry Detail | 21:50–27:34 | | Transition to Owner & Team Management | 32:41–36:21 | | Industry Uniqueness & Resilience to Outsourcing | 36:21–40:05 | | Leadership: Working On vs. In the Business | 40:23–47:02 | | Wealth, Ownership, and Personal Fulfillment | 47:12–49:57 | | Personal/Historical Reflections | 49:57–52:51 | | Racial Dynamics & Encouragement | 51:33–52:51 |

Contact & Closing

• Contact Bruce:

  • Email: bvann@luxout.com
  • Encourages outreach from prospective searchers, especially those facing similar obstacles.

• Closing Reflection:

  • Bruce’s journey demonstrates the transformative power of persistence, prudent opportunity selection, and the social importance of entrepreneurship for generational change.

For more episode summaries and resources, visit acquiringminds.co.